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Extended warranties are such a tricky issue.  In some cases, they can be well worth the investment.  When you need to use an extended warranty, you really need to use one.  But how often do they actually pay for themselves?  In most cases, the answer is, not often.  The general consensus is you can save money and still prepare for replacements by putting the money spent on warranties into a savings account.

When you are deciding whether or not to purchase an extended warranty, you need to take a look at the individual circumstances.  If you are spending several thousand dollars on a new set of living room furniture and the warranty will only add $100 or so to that total, it may be worth the peace of mind to pay the extra money.

If the cost of the warranty adds a significant amount to your purchase price, however, you may want to consider saving the money instead.

To help protect your investment, try to buy the best quality furniture you can afford.  High quality, name brand furniture is usually going to be more durable and likely to outlive its warranty period.  Brands such as La-Z-Boy offer lifetime warranties on some components, and brands such as Lane build their furniture with steel frames for ultimate durability.

So instead of spending money on an extended warranty you may or may not use, spend a little extra to buy higher quality furniture that will last a long time regardless of its warranty.